The Importance of Brand Recognition in the Consumer Purchase Decision
Written by Jordan Stokes.
Brands like Nike (Just Do It) make billions of dollars every year, and that’s because of one root constituent: brand recognition. In order to take a consumer through the buying process, they need to be able to recognize your brand. This is called brand recognition, or brand awareness.
Brand awareness and brand recognition play a larger role in the consumer purchase decision than one may think. Brand recognition is an asset that not only adds long-term value, but it can also lead consumers to an actual sale. We’ve done all the research for you. Find out how brand recognition is so important in the consumer purchase decision, right here.
What is a Brand?
Your brand is your identity, or the way your company is identified. This could be through logos, graphics, colors, sounds, and video.
For example, people can look at golden arches and immediately recall the brand McDonald’s, just like they can when they hear the “I’m Lovin’ It” jingle. Likewise, if someone says Harley-Davidson, people tend to think of choppers, leather jackets, and the colors black and orange. This ability to recall these specifics about a brand and tell it apart from others is called brand awareness, or brand recognition.
Brand Awareness and Brand Recognition Lead to Brand Trust and Brand Equity
Building awareness for your brand is important for your brand’s success. That means, the more brand awareness or recognition you gain from consumers, the more successful your brand or business will be. That’s because about about 59% of shoppers prefer to buy new products from brands that are familiar to them, which also creates a conversion, but builds a certain degree of brand trust.
Instilling trust in your audience and consumers is key to brand success. Take this for example:
You have a cold so you run to your local pharmacy for some medicine. You scan the aisle for some Vicks DayQuil and NyQuil, figuring it should be a fairly easy decision. You know Vicks and NyQuil are a dark green, DayQuil is orange, easy peasy, right? But it’s been awhile since you’ve had a cold and now there are more generic brands of that same medicine with similar colors. Do you try the sneaky CVS Pharmacy brand or do you go with what you know and trust?
You’re probably going for your trusted DayQuil and NyQuil, because over 50% of shoppers prefer to buy products from brands familiar to them. You know it and you trust it. The same goes for ORVs (outdoor recreational vehicles). If you’re Kaw person, you’re likely to always go with a Kawasaki because they’re a brand you know and trust.
If your customers trust you, they will not only stick with you and become loyal customers, but they will also be more inclined to recommend you to their friends and family. This leads to even more brand recognition because people are 90% more likely to trust and buy from a brand recommended by a friend or family member.
Building brand trust is also important for building brand equity. Brand equity is what your customers say about you. So, if your company continues to do great work over time, you can likely get your customers to review it on reliable review sites like Google and Yelp to help your brand trust and equity grow exponentially. According to BrightLocal’s Local Consumer Review Survey, 88% of consumers trust online reviews as much as personal recommendations. That means, when a consumer reads a positive review about your product or service, they’ll be more inclined to purchase it themselves.
Pro Tip: Building brand trust is more than just having people like your product. In fact, someone could love your products but if you have poor customer service, it can derail your whole brand. Keep in mind that in order to build brand trust, sometimes you have to go above and beyond in all areas of your business. The short term costs will pay off in the long run.
So, how does brand recognition influence the consumer purchase decision in the powersports industry?
Brand recognition influences the consumer purchase decision through brand trust, which creates customers for life.
Luckily, the powersports industry is all passion-based, so you don’t have to convince buyers to get on board with your business or what you’re offering. They’re going to be passionate whether you’re involved or not. The trick is keeping their attention focused on your brand, because moving them through to the sale (conversion) is achieved through brand awareness, recognition, and trust. One thing you can do to keep consumers’ attention is through your brand voice.
Brand voice is important in brand awareness and brand recognition, and it’s important that your voice is relatable to the consumer. In fact, 63% of consumers said they’d think more positively of a brand if it gave them content that was more valuable, interesting or relevant. So, you may not be putting out marketing initiatives that drive conversions and sales through the roof, but you can still build brand trust with your audience of consumers, which would ultimately lead to a purchase.
Pro Tip: Keep in mind that the content and marketing initiatives you put out might not always lead to a conversion, but it can still lead to brand recognition and brand success in the long run.
With online reviews, consumer shopping habits, and word-of-mouth recommendations resulting in five times more sales than a paid media impression, there’s no doubt brand recognition leads to brand trust and a consumer purchase.
Today, most consumers, especially those searching for ORV (outdoor recreational vehicles), are doing their research, reading reviews, looking for deals, and selecting dealers and OEMs online before coming to the store.
As an ORV brand, how can you stand out in the saturated and confusing marketplace for ORVs? By leveraging the power of brand trust and relating to your customers.
Rollick offers a transfer of national, recognized brand trust to a dealer’s brand equity! For example, within days of launching our State Farm and Progressive certified dealer programs, almost 40% of consumers identified themselves with these brands, resulting in higher quality conversions for the dealer.